Storm Resources Ltd. (TSXV: SRX) closed its acquisition of Montney acreage in the Nig area of Northeast British Columbia from Yoho Resources Inc. (TSXV: YO) for $87.9 million, the Calgary-based companies announced Jan. 31.

Storm acquired 100% working interest in 29 sections of land in the Umbach-Nig area prospective for liquids rich natural gas from the Montney formation. Included were two horizontal wells producing from the Montney formation.

The purchase price consisted of $30 million in cash and 13.6 million common shares of Storm at $4.25 per share. Yoho applied the net cash consideration received at closing to retire all current indebtedness under its credit facility. The revised borrowing capacity under Yoho's credit facilities will total $50 million.